Commercial RE Agent (by GKARL [PA]) Feb 14, 2019 6:02 AM|
Commercial RE Agent (by Deanna [TX]) Feb 14, 2019 6:22 AM
Commercial RE Agent (by GKARL [PA]) Feb 14, 2019 6:46 AM
Commercial RE Agent (by AllyM [NJ]) Feb 14, 2019 6:53 AM
Commercial RE Agent (by GKARL [PA]) Feb 14, 2019 8:12 AM
Commercial RE Agent (by WMH [NC]) Feb 14, 2019 8:57 AM
Commercial RE Agent (by Landlord ofthe Flies [TX]) Feb 14, 2019 11:52 AM
Commercial RE Agent (by Deanna [TX]) Feb 14, 2019 11:59 AM
Commercial RE Agent (by WMH [NC]) Feb 14, 2019 6:10 PM
Commercial RE Agent (by nhsailmaker [NH]) Feb 15, 2019 4:39 AM
Commercial RE Agent (by ned [AL]) Feb 16, 2019 3:06 PM
Commercial RE Agent (by Ray-N-Pa [PA]) Feb 19, 2019 6:55 PM
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Commercial RE Agent (by GKARL [PA]) Posted on: Feb 14, 2019 6:02 AM
In the education background string the other day, I spoke about how being in the accounting business helps my real estate activity. The main reason is my network. I have a pre-existing network of people I know (lenders, RE agents, RE investors and etc) that facilitate my real estate activity. I deal with them on the accounting side, often as clients, so it helps the real estate business. The real estate side helps the accounting side as well as I'll occasionally pick up tax clients from the RE side once someone realizes I'm a CPA. I don't push or advertise per se, the business just comes about as a matter of course.
A thought came in my head today about broadening this network and using my existing office to drive both businesses. The thought is why not become a commercial real estate agent? I already have an office that I can easily integrate this activity in. I already have commercial properties and I'm always looking at the MLS and have become pretty knowledgeable at this point. It would be a great way to expand my network, drive both businesses and maybe get the inside track on deals. It would also add another leg of income but one that I don't "need", but would be nice to have. Often when you don't "need" the income, you tend to be better at earning it. Also the appeal is dealing with other business people. Residential real estate is about fickle buyer emotions. Commercial is about the numbers and I'm an numbers guy and a business person. Seems like it would be a good fit.
Commercial RE Agent (by Deanna [TX]) Posted on: Feb 14, 2019 6:22 AM
Sounds interesting! Are there any ethical issues at play, with you trying to be an investor and fishing in the same pond in which you agent for others? If people perceive you as a competitor, would they trust you to be disinterested enough to represent them? Or would you focus mostly on sellers, rather than buyers? And if that's the case, would they trust you to get them a good number rather than helping someone lowball. --166.137.xxx.xx
Commercial RE Agent (by GKARL [PA]) Posted on: Feb 14, 2019 6:46 AM
I would need to find out about ethical rules and disclosures and the economic structure of commissions. Folks seem to get paid more for getting properties listed. I have securities licenses and I'm sure they have similar rules about client interaction and self dealing.
I think I could help buyers and sellers equally because I know the tax laws and am in the business myself. I look for business expansion opportunities that aren't too much of a learning curve or that aren't too far outside of what I'm doing already; that's not to suggest there's nothing else to learn, but the curve doesn't appear to be steep. This seems like a good idea for me because it's more skill driven and you're dealing with business people. --209.122.xx.xxx
Commercial RE Agent (by AllyM [NJ]) Posted on: Feb 14, 2019 6:53 AM
Great idea. I took the RE course years ago but never took the exam. I guess there is another course and exam for brokers? --73.248.xxx.xxx
Commercial RE Agent (by GKARL [PA]) Posted on: Feb 14, 2019 8:12 AM
Amy, my initial thing would be to start off as an agent but moving into brokerage wouldn't be a bad deal. I have a friend who's a broker and I think that I'm going to pick their brain. The problem with starting a brokerage is that you have to go up against the big names like Keller Williams, Coldwell Banker and etc. and that puts one at a distinct disadvantage if you have a small unknown brokerage. To my way of thinking, the better approach for me to is start off as an agent, build out my network, and then evaluate from there. I think one can do well as commercial real estate agent. I know of someone who made a bit over a half million dollars in commissions over the past couple of years. The issue is no inventory on the commercial side right now and the key for success in the business is the contacts and knowledge. I could see this driving my accounting business easily even if I got no sales. Right now, I don't market or push for accounting work. My business comes in strictly by referral. I would likely pick up clients thus building out my network. Expansion of my networks and knowledge would be the real value here. The commissions would be gravy.
Commercial RE Agent (by WMH [NC]) Posted on: Feb 14, 2019 8:57 AM
I think the value of the listing thing is not that you get paid more, but that you get paid no matter what if the property sells, no matter who buys it. A Buyer's Agent has to ensure that HIS buyer buys it in order to get paid, and you can't force a buy. --50.82.xxx.xx
Commercial RE Agent (by Landlord ofthe Flies [TX]) Posted on: Feb 14, 2019 11:52 AM
The ethics issue would come to play if he were both the buyer and the seller's agent. Assuming he's representing himself, he'd be buyer's agent, buyer, and seller's agent. Good luck proving non-biased in that situation in court.
However, if the client comes to him to represent them to sell, and instead he offers to buy, and is not contracted as his listing agent, then there would be no issue. He might also want to better insure himself by recommending the seller get another agent at a discount since it's only a paper pushing event at that point. That extra paid in commission would be valuable insurance against a lawsuit.
Going up against an established broker isn't as bad as it sounds. Keep in mind that it's a people business. While not having a popular broker behind you may cost you some business, ultimately it comes down to the quality of the agent. After all, not every Keller agent is a great agent. Same with any brokerage. Just using Keller as an example since they were mentioned earlier.
You could always start with the bigger brokerage, learn all they can teach, establish a reputation, then start your own brokerage. --108.69.xxx.xxx
Commercial RE Agent (by Deanna [TX]) Posted on: Feb 14, 2019 11:59 AM
LLotF, cool beans.
There was this one place that was for sale in our town through a local realtor. It sat and sat and sat unsold. We put in a lowball offer for $x. The commission on our lowball offer wouldn't have been worth the realtor's time-- but they used that information to tell their cousin to put in a bid for $y, which was still lowball, but not quite as lowball as ours was. So of course, the cousin ended up getting it.
So that was the sort of scenario I was thinking about--- where you're privy to certain information in the pond you plan on fishing in, and there might be the appearance of using it to benefit yourself, rather than bouncing it off to benefit a relative. --96.46.xxx.xx
Commercial RE Agent (by WMH [NC]) Posted on: Feb 14, 2019 6:10 PM
Deanna, and that DOES go on no matter what is said about ethics. --50.82.xxx.xx
Commercial RE Agent (by nhsailmaker [NH]) Posted on: Feb 15, 2019 4:39 AM
I think that inherently you already know the answer to your question
life is way too short to hesitate on opportunities
As Yogi Berra said - " when you are at a fork in the road - Take it" --73.182.xxx.xxx
Commercial RE Agent (by ned [AL]) Posted on: Feb 16, 2019 3:06 PM
I've considered this same thing. Currently run a [marketing] biz and well acquainted with lots of biz folks in town. And, no realtor in our small Alabama town seems to know what they are doing when it comes to commercial or income property. --70.92.xx.xx
Commercial RE Agent (by Ray-N-Pa [PA]) Posted on: Feb 19, 2019 6:55 PM
Look up what it takes to become a CCIM and the strive for it --72.23.xxx.xx
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